Do I Budget or Just Keep Track of Expenses?
Filed under Budgeting , by Alison on 8:51 PM
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Or are they the same thing?
We received our electricity/gas bill the other day and it was slightly higher than the amount we budget each month for that bill. But that doesn't matter so much. I certainly hope it is smaller next month, but I'm not scrambling to figure out where the extra money will come from. Which made me start thinking about my budgeting methods.
It seems that we go over in at least one budget category each month. Based on what I've read, that means we should adjust the budget (because what we are currently alloting isn't enough) by adding to that category and taking way from the other. Instead, I just kind of smile and nod and pay attention to the big numbers - did we spend less than we brought in? Because really that's all I ultimately care about. What's extra goes to a savings account - depending on what our current goal is. I do use the budget amounts as a guide, because if I stick with them (and I do really try to and for the most part I do), we'll have extra money at the end of the month and that's what we want. But if I do go over, I don't try and pick up slack elsewhere.
So am I really budgeting? Or just watching carefully where our money is spent?
Either way, I don't think it matters. It does seem to work.